NEAR’s proposal to cut token issuance passes, but the token falls 7%. Selling the news after good news is priced in—this story is nothing new.
The NEAR community has passed a proposal to reduce annual token issuance: 11.8 million fewer NEAR will be released over the next two years, worth about $45 million at current prices. But after the news broke, NEAR fell around 7%—a classic case of “selling the news.”
There are two sides to this. In the long term, it’s structurally bullish: lower issuance means less dilution and less pressure on the supply side, benefiting long-term holders. In the short term, however, it’s bearish, because what’s being cut is staking rewards and expected issuance. The actual yield for holders who stake their tokens will decline, prompting some investors to take profits or switch to higher-yielding assets, naturally putting pressure on the price.
For traders, the key isn’t the proposal itself, but whether the market is willing to reprice NEAR based on a “deflationary narrative.” For now, capital is clearly favoring short-term returns over the long-term story, showing that views remain divided.
The outlook is mixed, with a bearish short-term bias. Related asset: NEAR. What’s really worth watching is whether the on-chain staking rate drops significantly as rewards decline, and whether ecosystem incentives shrink alongside reduced new issuance. If incentives weaken and activity falls, deflation won’t translate into price gains. Those looking to buy the dip don’t need to rush into the first rebound; it’s safer to wait for staking data and trading volume to stabilize before assessing buying support.
Source: Cointelegraph
#NEAR
Image 1: NEAR’s proposal to cut token issuance passes, but the token falls 7% · Image from the source report
Image source: https://cointelegraph.com/markets/near-sinks-7-proposal-cut-annual-token-issuance-passes?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound
The NEAR community has passed a proposal to reduce annual token issuance: 11.8 million fewer NEAR will be released over the next two years, worth about $45 million at current prices. But after the news broke, NEAR fell around 7%—a classic case of “selling the news.”
There are two sides to this. In the long term, it’s structurally bullish: lower issuance means less dilution and less pressure on the supply side, benefiting long-term holders. In the short term, however, it’s bearish, because what’s being cut is staking rewards and expected issuance. The actual yield for holders who stake their tokens will decline, prompting some investors to take profits or switch to higher-yielding assets, naturally putting pressure on the price.
For traders, the key isn’t the proposal itself, but whether the market is willing to reprice NEAR based on a “deflationary narrative.” For now, capital is clearly favoring short-term returns over the long-term story, showing that views remain divided.
The outlook is mixed, with a bearish short-term bias. Related asset: NEAR. What’s really worth watching is whether the on-chain staking rate drops significantly as rewards decline, and whether ecosystem incentives shrink alongside reduced new issuance. If incentives weaken and activity falls, deflation won’t translate into price gains. Those looking to buy the dip don’t need to rush into the first rebound; it’s safer to wait for staking data and trading volume to stabilize before assessing buying support.
Source: Cointelegraph
#NEAR
Image 1: NEAR’s proposal to cut token issuance passes, but the token falls 7% · Image from the source report
Image source: https://cointelegraph.com/markets/near-sinks-7-proposal-cut-annual-token-issuance-passes?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound
